Tony Stewart’s $20+ Million Assets in Jeopardy as NASCAR Keeps Mum on SHR’s Charter Sale

The veteran Stewart Haas Racing team previously this year announced to shut operations with the conclusion of the 2024 season. But SHR has four charters. And while they themselves have retained one to run a single driver Cup team in the 2025 season under the name of Haas Factory team, the remaining three were up for sale.

Out of the three, Justin Marks’ Trackhouse Racing purchased one fielding Shane van Gisbergen in the third car for the next season. And as for the remaining two, 23XI Racing and Front Row Motorsports, each have agreements in place to buy them. However, for the process to be completed, and the charters transferred, NASCAR needs to give their approval. But with the ongoing lawsuit between 23XI, FRM, and NASCAR, things are on a halt. And after NASCAR president Steve Phelps’s recent comment and the court’s ruling, the time frame for this seems indefinite.

NASCAR’s stand on Tony Stewart’s two charters

The charter agreement previously signed in 2016 was up for renewal in 2024. The two teams rather filed an antitrust lawsuit against the racing organization accusing them of monopolistic practices. The long list of accusations consists of how teams are not allowed to participate in other stock car events, or how they can only buy spare parts from NASCAR partnered vendors. While this case was ongoing, the teams also asked the court for a preliminary injunction.

However, the court denied the team the injunction. What this means is that the two teams don’t get the status of charter teams. With that status, the teams get an equal share of revenue in the race purse as the signees, and a guaranteed spot in the field for all races, among other benefits. But since the injunction request is now denied, the teams won’t have those benefits. While they have an option to appeal the decision, their 2025 status in NASCAR hangs in the balance. Both 23XI racing and FRM field two cars each, but now, according to NASCAR, in the 2025 season, there would only be 32 cars rather than 36, with 8 open entries. So this leaves a big question- what happens to the Tony Stewart-owned SHR’s two unsold charters that 23XI and FRM planned to buy?

Recently, Fox Sports journalist Bob Pockrass asked NASCAR president Steve Phelps this very question. However, according to Pockrass, Phelps refused to comment, leaving the matter still hanging. Pockrass on X wrote, “Phelps says no comment on the SHR charters and what could happen to them as he doesn’t know what happens to them. My guess reading between the lines is that he has not gotten formal paperwork about those transfers.” This must leave Tony Stewart in a pickle since the charters are worth between $20-30M apiece, as was previously reported by Adam Stern of the Sports Business Journal.

Phelps says no comment on the SHR charters and what could happen to them as he doesn’t know what happens to them. my guess reading between the lines is that he has not gotten formal paperwork about those transfers.

— Bob Pockrass (@bobpockrass) November 8, 2024

Also, if the two teams have to race as ‘open teams’, doesn’t that mean they have to drop the charges? Open cars cannot file a lawsuit against NASCAR. Bob Pockrass had previously reported, “23XI/FRM state open team agreement also requires them to waive right to pursue this type of lawsuit so injunction needed to race.” However, the Michael Jordan-led 23XI team and FRM had earlier talked about how they would race, no matter what, for their sheer love of the sport.

What is next for the two teams?

Steve Phelps, in a recent press conference, denied speaking about the charters but stayed firm on their stand to only field 32 charter cars. “I know people are frustrated about that. We are not going to negotiate in the media about charters, ever. And we are very happy that 32 of the 36 charters were extended because those were race teams that, where the deal that was put on the table for them, the primary big win for the race teams was money.” According to Phelps, the new charter gives the signees a substantial amount of revenue cut, making them “the single largest beneficiary” in the deal.

At the moment, this confirms that 23XI and FRM have no charters for the 2025 season. However their lawyer, Jeffrey Kessler recently talked about the next steps, he said, “We are disappointed that the preliminary injunction was denied without prejudice and as premature, which we intend to appeal, this denial has no bearing on the merits of our case. My clients will move forward to race in 2025 and fight for a more fair and equitable system in NASCAR that complies with antitrust laws.”

Earlier, the teams had argued that the absence of an injunction would mean irreparable harm to them. Kessler argued that their drivers might leave the team in the absence of the charter status. The 2024 regular season champion, current championship contender, and a star performer of their team, Tyler Reddick, is permitted to terminate his contract with the team if there is no charter for his car. Another reason was that the teams could lose a substantial amount of revenue since it comes from race purses which are only for chartered teams. But the court remained dissatisfied with the argument.

The Judge said, “Although Plaintiffs have alleged that they will face a risk of irreparable harm, they have not sufficiently alleged present, immediate, urgent irreparable harm, but rather only speculative, possible harm.” As of now, the teams have the option to file a new motion and have until December 2nd to respond.

What do you think will happen in the case of SHR’s charters? Share your thoughts with us in the comments below.

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